Hedge funds remain a critical component of the global financial system, offering unparalleled opportunities for wealth creation, and the U.S. is leading this sector big time!
As the ultimate investment vehicle for the ultra-wealthy, hedge funds manage an incredible $4 trillion in assets worldwide. These funds provide high-net-worth clients exclusive investing possibilities and strategies, tailored specifically to meet their demands.
Interestingly, according to the Financial Times, there are more hedge funds than Burger King restaurants in the world—30,077 funds total—than there are Burger King locations (18,700 total). Approximately 65 percent of these hedge funds are based in the US. We’ve ranked the top ten U.S.-based hedge fund managers according to total assets under management, taking into account the concentration of hedge fund managers and assets in the country. Altogether, these managers own around 25% of the global assets under management for hedge funds.
Citadel
The five primary strategies used by Miami-based Citadel are global fixed income and macro, equities, commodities, credit and convertibles, and global quantitative strategies. As of March 18, 2023, Citadel, which was founded in 1990 by Kenneth Griffin, who began trading in 1987 while living in his dorm room at Harvard University, managed $339 billion in assets. Griffin is still the co-chief investment officer and CEO.
Chris Hohn – TCI Fund Management
This year’s hedge fund Rich List is headed by Chris Hohn’s London-based TCI Fund Management, whose highly concentrated, mostly long portfolio saw a 33% gain in 2023—its best result in the previous four years. This gain more than made up for the fund’s 18% 2022 loss. More than any other company, TCI made $12.9 billion in profits for its investors in 2023. Alphabet, Moody’s, and Visa were among the top U.S.-listed winners of TCI, with advances of 58%, 40%, and 25%, respectively. Despite his reputation for taking an activist stance, Hohn stated in an interview with Institutional Investor that, for his fund, activism has evolved into more of an opportunistic approach than a core strategy.
Bridgewater Associates
In the realm of hedge funds, Bridgewater Associates, situated in Westport, Connecticut, is another formidable force. Ray Dalio started Bridgewater in 1975 from his apartment in New York. Today, the firm works with a wide range of institutional clients, such as pension funds, central banks, foreign governments, university endowments, and charitable organizations. Since then, Ray Dalio has assumed the job of CIO mentor, and Nir Bar Dea is the CEO at this time.
Other Remarkable Hedge Funds
In addition to these titans, there are several other noteworthy firms in the U.S. hedge fund market that also contribute to the industry’s enormous asset pool and creative approaches. Here are a few additional notable companies:
AQR Capital Management: AQR, which oversees more than $186 billion, is well-known for its quantitative approach and emphasizes systematic investment through sophisticated mathematical models.
Renaissance Technologies: Founded by James Simons, it is well-known for its Medallion Fund, which uses statistical and mathematical techniques to trade and has generated remarkable returns over the years.
Investments in Two Sigma: An average of $60 billion worth of assets are managed by Two Sigma through the use of data-driven and machine-learning technologies.